Ethereum 2.0 Should Be Secure and Scalable but Poses Risks for Users
Cointelegraph
Published Jun 21, 2020 02:15AM ET
Updated Jun 21, 2020 02:20PM ET
Alongside the ultimate scalability and security for the Ethereum network, the upcoming Ethereum 2.0 upgrade to a proof-of-stake model promises to bring additional, new benefits to its users, too. One of the main attractions, which encourages buying Ether (ETH), is a staking model that allows receiving passive income for the validation of transactions. And here, the users are able to choose between two different options: The first implies depositing 32 ETH and running a validator node software, and the second allows for staking without having to deposit or run nodes by joining third-parties’ pools.
The numbers speak for themselves, as 66% of the Ethereum community are proponents of staking with the remaining still unsure of their choice. With promising benefits, however, the new upgrade can bring some risks, too. How will the new staking model affect those who choose to stake, hold or trade, and what can the negative scenarios be for those who decide to keep mining with the old network?
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Written By: Cointelegraph
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